In 1969 UA purchased the film rights to The Lord of the Rings and The Hobbit from J.R.R. Tolkien for just over £100 000.[1] It is often repeated that Tolkien sold the rights for a 'pittance' in order to pay a tax bill,[1][2] in fact the sum he was paid was approximately equivalent to £2.3 million in 2009 and in addition to it he retained a 7.5% royalty interest in any future adaptation (transmitted to the Tolkien Estate on his death).[3][4]

United Artists commissioned John Boorman to write a screenplay of The Lord of the Rings in 1970, but it was never produced.[5] In 1976 they sold most of their rights to Tolkien's work to Saul Zaentz Company, who have licensed all subsequent authorized adaptations of The Hobbit and The Lord of the Rings through Middle-earth Enterprises. However United Artists retains the world distribution rights to film adaptations. These are currently exercised by their parent company MGM, who are under contract to co-finance the upcoming film adaptation of The Hobbit.